Decentralized USD

USDD

USDD is a fully algorithmic stablecoin native to the Tron blockchain. The TRON DAO Reserve manages USDD and guarantees its price stability through a basket of reserve assets.

Risk Rating
Average
$1.00
-0.24%
Summary
What we like
Offers users a non-volatile store of value that is backed algorithmically through a seigniorage model as well as through overcollateralization with treasury assets.
What we like less
USDD is exposed to death spiral risk as its price depends on another asset, TRX, thus creating negative feedback loops.
What it means for you
Allows you to earn high yield on a stable asset through staking and lending services within the Tron ecosystem.

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Information
Blockchain
  • Tron
Info
Key Metrics
  • Market Cap: $729.5M
  • Ranking inside Exponential (among stables): #5
  • Circulating Supply: 732,599,042
  • Volume (24H): $3M
  • ATH: $1.05 (10/23/2023)
  • ATL: $0.93 (06/19/2022)
Risk Assessment
Average
Asset Strength

USDD is a low-cap asset with questionable collateral reserves.

USDD is a stablecoin that trades within 50bps of its peg to USD, which makes it a less volatile store of value.

Asset Tokenomics

USDD has an uncapped supply. USDD is exposed to death spiral risk as its price depends on another asset, thus creating negative feedback loops. USDD is an algorithmic stablecoin that operates similarly to UST whereby users can mint 1 USDD by burning 1 USD equivalent of TRX, and vice versa. USDD is custodied by the TRON DAO Reserve to ensure price stability with reserve assets. These assets currently consist of over $2B of collateral including TRX, BTC, USDT and USDC, and is higher than the amount of USDD in circulation.

Asset Volatility

USDD is a stablecoin that trades within 50bps of its peg to USD, which makes it a less volatile store of value. USDD is custodied by the TRON DAO Reserve to ensure price stability with reserve assets. These assets currently consist of over $2B of collateral including TRX, BTC, USDT and USDC, and is higher than the amount of USDD in circulation.

Dependencies

Decentralized USD has no dependencies.

Things to know about USDD

How is USDD created?

USDD is an algorithmic stablecoin created by the Tron network. Its value is pegged to USD and kept stable through the Tron DAO Reserve, which oversees USDD as its early custodian and ensures its price stability with treasury reserves. USDD can only be minted and redeemed by whitelisted institutions with exclusive access to swap between USDD and TRX. Currently, there are only nine whitelisted intitutions in the DAO that can mint and redeem USDD.

How is the price of USDD kept stable?

The Tron DAO Reserve stabilizes the value of USDD by setting the risk-free yield and regulating the market through liquidity provision. The DAO also issues and custodies reserve assets to minimize systemic risks and ensure USDD stability. USDD is secured by overcollateralization of its treasury assets (TRX, BTC, ETH, USDC and USDT) with its collateral ratio set at 130%. Lastly, the DAO launched a Peg Stability Module (PSM) that allows users to swap between USDD and other stablecoins at a 1:1 rate with no slippage as another backstop for USDD.

How secure is USDD?

USDD can only be minted through the Tron DAO Reserve by a limited group of trusted institutions during the initial stage of launch. The stablecoin is based on the Tron blockchain, which is more centralized as it only has 27 validators securing the network. The DAO pre-issued 999B tokens and initially transferred 1B tokens to an authorized, multi-signature contract as the early USDD reserves. The remaining 998B USDD will be transferred and staked in an issuance contract that is controlled by a 5/7 multisig with a 10-day timelock. The Tron DAO Reserve can authorize more USDD to be issued from the contract at any time via the multisig pending the timelock.

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USDD Pools
JustLend USD Lending
6.6%
Yield
$165M
TVL
Risk
D
Protocol
JustLend
Chain
Tron

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